***US financial markets have a.......>

US TSYS/STOCKS: ***US financial markets have a strange anticipatory feeling, a

kind of fin-de-siecle feeling in the US stock market, which keeps rising still,

even nearly 8.5 years after 2008 financial crisis, said traders. They wonder how

much longer US stocks can keep going up, and believe some astute traders may be

already gradually selling to take chips off the table to trim potential losses

in case of a stock selloff. Some are citing certain signs of exhaustion in the

market. 

- Meanwhile some traders also feel US bonds are overvalued, for the state of

where the improving economy is now, and not really -- yet -- taking into

consideration that large Tsys debt supply is coming in 4Q 2017. And that's not

even going anywhere near the nearer-term debt ceiling and budget issues this

fall. Or even leaving out the expected Q/E taper program that could be announced

in September to reduce the Fed's $4.5Bln balance sheet, and start taking place

in October, they said. As an example of potential over-valuation, the 10-year

note yield dropped 16 basis points in August.